Journal entries
This query is : Resolved
11 July 2013
Hi,
May i know the payment entries of TDS payable, Service tax payable and VAT payable, when there is a input Tax (TDS,Service TAX and VAT) and output Tax(TDS,Service TAX and VAT) in a company.
And how i can set off the payments payable tax with input tax.
Am getting trouble when am giving the entries in Tally for the payment of tax.
Thanks in Advance.
Anil
May i know the payment entries of TDS payable, Service tax payable and VAT payable, when there is a input Tax (TDS,Service TAX and VAT) and output Tax(TDS,Service TAX and VAT) in a company.
And how i can set off the payments payable tax with input tax.
Am getting trouble when am giving the entries in Tally for the payment of tax.
Thanks in Advance.
Anil
11 July 2013
tds payable . service tax payable to be deposited by you
and vat output a/.c dr
to VAT input a/c cr
set off the vat bal
and vat output a/.c dr
to VAT input a/c cr
set off the vat bal
11 July 2013
Thanks
And my Question is how can I set off the input service tax with out service tax and TDS deducted by me to TDS deducted by my Debetor.
Ex. If am having input service Tax 100/- and at the same time i collected Rs. 200/- as output service tax. same as to TDS also.
If some body deducted the TDS how we can set off the same in books of Accounts.
Kindly Explain PLS
And my Question is how can I set off the input service tax with out service tax and TDS deducted by me to TDS deducted by my Debetor.
Ex. If am having input service Tax 100/- and at the same time i collected Rs. 200/- as output service tax. same as to TDS also.
If some body deducted the TDS how we can set off the same in books of Accounts.
Kindly Explain PLS
02 August 2024
Sure, let’s break this down into different sections for clarity:
### **1. Payment Entries for Taxes**
**a. TDS Payable:**
When you pay TDS to the government, you need to record the payment against the TDS payable account.
**Example Entry:**
```
Date Account Debit Credit
-------------------------------------------------------
[Date] TDS Payable XXXX
To Bank/Cash XXXX
(To record payment of TDS)
```
**b. Service Tax Payable:**
When you pay service tax to the government, you need to record the payment against the Service Tax payable account.
**Example Entry:**
```
Date Account Debit Credit
-------------------------------------------------------
[Date] Service Tax Payable XXXX
To Bank/Cash XXXX
(To record payment of Service Tax)
```
**c. VAT Payable:**
When you pay VAT to the government, you need to record the payment against the VAT payable account.
**Example Entry:**
```
Date Account Debit Credit
-------------------------------------------------------
[Date] VAT Payable XXXX
To Bank/Cash XXXX
(To record payment of VAT)
```
### **2. Setting Off Input Taxes with Output Taxes**
**a. Input Service Tax vs. Output Service Tax:**
If you have collected Rs. 200/- as output service tax and have Rs. 100/- as input service tax, you can set off the input service tax against the output service tax.
**Example Entry for Set-Off:**
```
Date Account Debit Credit
-------------------------------------------------------
[Date] Output Service Tax 200
To Input Service Tax 100
To Service Tax Payable 100
(To record the set-off of input service tax against output service tax)
```
**b. TDS Adjustment:**
For TDS deducted by your debtor, you need to adjust the TDS credit against your TDS payable.
**Example:**
If your debtor has deducted TDS and the TDS is reflected in your Form 26AS, you can record the adjustment as follows:
**Entry for TDS Deducted by Debtor:**
```
Date Account Debit Credit
-------------------------------------------------------
[Date] TDS Receivable XXXX
To TDS Payable XXXX
(To record TDS deducted by debtor)
```
When you make the TDS payment to the government:
**Entry for TDS Payment:**
```
Date Account Debit Credit
-------------------------------------------------------
[Date] TDS Payable XXXX
To Bank/Cash XXXX
(To record payment of TDS)
```
**c. Input VAT vs. Output VAT:**
You need to adjust the input VAT against the output VAT for the same tax period.
**Example Entry:**
```
Date Account Debit Credit
-------------------------------------------------------
[Date] Output VAT XXXX
To Input VAT XXXX
(To record the set-off of input VAT against output VAT)
```
### **3. Accounting in Tally**
In Tally, the process is as follows:
1. **Create the necessary ledgers:**
- TDS Payable
- Service Tax Payable
- VAT Payable
- Input Service Tax
- Output Service Tax
- Input VAT
- Output VAT
2. **Record the entries:**
- For payments, go to `Accounting Vouchers` and select the appropriate voucher type (Payment).
- Enter the amount and select the ledger accounts accordingly.
3. **Set-off Input and Output Taxes:**
- For setting off taxes, use `Journal Vouchers` or `Tax Payable Vouchers` depending on the version of Tally you are using.
4. **For TDS adjustments:**
- Use `Journal Vouchers` to record TDS received and adjust it against the TDS payable.
Make sure you reconcile these entries with your tax returns and Form 26AS/Tax Credit Statements to ensure accuracy.
### **Summary**
1. **Payment Entries**: Record payments against TDS, Service Tax, and VAT payables using appropriate ledgers.
2. **Set-Off Input Taxes**: Adjust input taxes against output taxes for service tax and VAT.
3. **TDS Adjustment**: Record TDS deducted by debtors and adjust it against TDS payable.
Ensure all entries are reconciled with your tax returns and statutory records. If you face any specific issues in Tally or need more tailored assistance, consulting a professional accountant or Tally expert might be beneficial.
### **1. Payment Entries for Taxes**
**a. TDS Payable:**
When you pay TDS to the government, you need to record the payment against the TDS payable account.
**Example Entry:**
```
Date Account Debit Credit
-------------------------------------------------------
[Date] TDS Payable XXXX
To Bank/Cash XXXX
(To record payment of TDS)
```
**b. Service Tax Payable:**
When you pay service tax to the government, you need to record the payment against the Service Tax payable account.
**Example Entry:**
```
Date Account Debit Credit
-------------------------------------------------------
[Date] Service Tax Payable XXXX
To Bank/Cash XXXX
(To record payment of Service Tax)
```
**c. VAT Payable:**
When you pay VAT to the government, you need to record the payment against the VAT payable account.
**Example Entry:**
```
Date Account Debit Credit
-------------------------------------------------------
[Date] VAT Payable XXXX
To Bank/Cash XXXX
(To record payment of VAT)
```
### **2. Setting Off Input Taxes with Output Taxes**
**a. Input Service Tax vs. Output Service Tax:**
If you have collected Rs. 200/- as output service tax and have Rs. 100/- as input service tax, you can set off the input service tax against the output service tax.
**Example Entry for Set-Off:**
```
Date Account Debit Credit
-------------------------------------------------------
[Date] Output Service Tax 200
To Input Service Tax 100
To Service Tax Payable 100
(To record the set-off of input service tax against output service tax)
```
**b. TDS Adjustment:**
For TDS deducted by your debtor, you need to adjust the TDS credit against your TDS payable.
**Example:**
If your debtor has deducted TDS and the TDS is reflected in your Form 26AS, you can record the adjustment as follows:
**Entry for TDS Deducted by Debtor:**
```
Date Account Debit Credit
-------------------------------------------------------
[Date] TDS Receivable XXXX
To TDS Payable XXXX
(To record TDS deducted by debtor)
```
When you make the TDS payment to the government:
**Entry for TDS Payment:**
```
Date Account Debit Credit
-------------------------------------------------------
[Date] TDS Payable XXXX
To Bank/Cash XXXX
(To record payment of TDS)
```
**c. Input VAT vs. Output VAT:**
You need to adjust the input VAT against the output VAT for the same tax period.
**Example Entry:**
```
Date Account Debit Credit
-------------------------------------------------------
[Date] Output VAT XXXX
To Input VAT XXXX
(To record the set-off of input VAT against output VAT)
```
### **3. Accounting in Tally**
In Tally, the process is as follows:
1. **Create the necessary ledgers:**
- TDS Payable
- Service Tax Payable
- VAT Payable
- Input Service Tax
- Output Service Tax
- Input VAT
- Output VAT
2. **Record the entries:**
- For payments, go to `Accounting Vouchers` and select the appropriate voucher type (Payment).
- Enter the amount and select the ledger accounts accordingly.
3. **Set-off Input and Output Taxes:**
- For setting off taxes, use `Journal Vouchers` or `Tax Payable Vouchers` depending on the version of Tally you are using.
4. **For TDS adjustments:**
- Use `Journal Vouchers` to record TDS received and adjust it against the TDS payable.
Make sure you reconcile these entries with your tax returns and Form 26AS/Tax Credit Statements to ensure accuracy.
### **Summary**
1. **Payment Entries**: Record payments against TDS, Service Tax, and VAT payables using appropriate ledgers.
2. **Set-Off Input Taxes**: Adjust input taxes against output taxes for service tax and VAT.
3. **TDS Adjustment**: Record TDS deducted by debtors and adjust it against TDS payable.
Ensure all entries are reconciled with your tax returns and statutory records. If you face any specific issues in Tally or need more tailored assistance, consulting a professional accountant or Tally expert might be beneficial.
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